Trailbreaker Resources Ltd. has announced a non-brokered private placement offering designed to raise up to $3 million to fund critical minerals exploration in British Columbia. The structured offering consists of two types of flow-through units, both qualifying under Canadian tax legislation to provide investors with tax deductions for exploration expenses.
The offering includes up to 2,142,857 CMETC flow-through units at $0.56 per unit to raise $1.2 million, with each unit consisting of one flow-through common share and one-half of a common share purchase warrant. Additionally, up to 3,600,000 flow-through units at $0.50 per unit will raise $1.8 million, with similar warrant structure. All warrants are exercisable at $0.50 for 24 months from issuance for non-flow-through common shares.
This financing matters because it directly supports the exploration for critical minerals essential to the global transition toward clean energy and electrification. The funds will be used to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures under the Income Tax Act, with specific provisions for critical mineral mining expenditures. For British Columbia purchasers, these qualify as BC flow-through mining expenditures under provincial tax legislation.
The company will use proceeds equal to the gross proceeds from the offering to fund exploration activities on its British Columbia properties. These qualifying expenditures must be incurred by December 31, 2027, and will be renounced to initial purchasers effective December 31, 2026. All securities issued will be subject to a four-month plus one day hold period in Canada following closing, pending acceptance by the TSX Venture Exchange.
The importance of this financing extends beyond corporate fundraising to broader economic and strategic implications. Flow-through financing structures enable junior mining companies like Trailbreaker to access capital for high-risk exploration by passing tax deductions to investors, making early-stage mineral exploration financially viable. This is particularly significant for critical minerals exploration, as these metals are essential components in batteries, renewable energy infrastructure, and electrification technologies.
For investors, this offering provides potential tax advantages while supporting exploration for minerals crucial to Canada's and the world's green energy future. For the mining industry, successful exploration could lead to new mineral discoveries that strengthen domestic supply chains for critical materials. For British Columbia, the exploration activities represent economic activity and potential future resource development in the province.
The offering's structure reflects the growing emphasis on critical minerals within Canadian mining policy and investment frameworks. By distinguishing between general flow-through units and CMETC (critical mineral exploration tax credit) flow-through units, the financing aligns with government incentives designed to encourage exploration for minerals deemed strategically important for economic security and technological advancement.
For new information about the company's projects, please visit TrailbreakerResources.com. View the original release on www.newmediawire.com.
